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Thomas Lee projects Bitcoin [BTC] price of ‘$36000 by 2019 year end’

Anirudh VK

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Thomas Lee projects Bitcoin [BTC] price of '$36000 by YE 19'
Source: Pixabay

Thomas Lee of Fundstrat Global released the highlights of a Bitcoin mining whitepaper published by FundstratQuant. He highlights his reasons believing Bitcoin would hit $36000 by the end of the year 2019.

The paper details that Bitcoin mining economics lead and explain the price for Bitcoin. The primary argument of the paper is that the multiple of the price and cost required for miners to break even, referred to as the metric P/BE, has “proven a reliable long-term support level” and that the projected trajectory of the growth of mining infrastructure should underpin the appreciation of the price of Bitcoin.

The paper mentions that the mining economy is expected to grow over the next several years, and project a BTC price roughly equivalent to $36000 based on the historical average of 1.8x  for the P/BE multiple.

Even as the rate of electricity cost escalation reduces, the network becomes more efficient with newer rigs coming to the market, which offer a higher hash power per watt of electricity consumes. The risk to the thesis lies within this, as a ‘material shift’ in the trajectory of hash power could change the P/BE support price.

As mining is becoming increasingly concentrated in large-scale operations, smaller miners are needed to join these so-called mining “pools” to stay competitive.

Mad Miner, a crypto miner tweeted:



“will be interesting to see if we get there as the increase in difficulty is averaging 7% every 2 wks… Over the next 20 wks that means profit per rig will drop by 70%. We may be approaching a tiping point for smaller miners.”

Sciclo, another Twitter user commented:

“That’s way of of my prediction witch was $ 231,000 in 2 to 3 years, 6 months ago. But that was an holistic calcultion and not a miner economics approach. #Bitcoin we ‘r talking! @rogerkver On the hypothesis of #investors taking a bigger share in #crypto for portfolio insurance.”

A market enthusiast commented:

“I think the assumptions do not include dramatic improvements like lightning network, as such the conclusions are light, likely by substantial amounts.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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Bitcoin

Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more

Priya

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Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more
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Daily Crypto News – April 18

Craig Wright withdraws email evidence: The self-proclaimed Satoshi Nakamoto withdrew the email evidence submitted to the court with regard to Kleiman case. This news comes days after some members in the community suggested that the email evidence was “fake”. Notably, the evidence was withdrawn as Wright could not verify the timeframe of when the emails were exchanged.

To know more, click here!

US 2020 Presidential Candidate urges the need for cryptocurrency regulation: Andrew Yang, the United States 2020 Democratic Presidential candidate, released a new policy, which emphasized on the need for regulating the digital asset place, and also listed the actions he would do for the cryptocurrency market as the President. On his official Twitter handle, Yang stated that, “Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks”.

To read more, click here!

Bitcoin SV network witnesses yet another blockchain reorganization: It was reported that Bitcoin SV’s network witnessed another blockchain reorganization on a 128 MB block, with over six blocks orphaned [#578640–578645]. Moreover, Bitcoin SV’s network was unresponsive for over an hour.

To read more, click here!



Craig Wright takes on evidence and law: In a recent blog post, Wright speaks about proving to be the creator of Bitcoin, Satoshi Nakamoto. He stated that, “the important thing to understand is: law is law. Code (programs and algorithms) in any form is merely evidence… You see, ownership of the key is not proof of anything other than the possession of a key”

To read more, click here!





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